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BoJ QE Hope Keeping USD/JPY Afloat

The USD/JPY has been consolidating after it dipped to a multi-year low around 116. In the 4H chart we can see the somewhat coiling action as price oscillates above and below 120.

USD/JPY 4H Chart 9/21

(click to enlarge)

There is clearly a triangle, and price bounced off triangle support just above 119 last Friday. This week, it continued to climb above 120 and looks poised to test the triangle resistance. 

A Zero Hedge article points out that there is "Renewed Hope for BoJ QE"

A break above 121 would indicate a bullish breakout. To the upside, the first target could be around the 122.40-122.50 area. In the daily chart, this area involves the 100- and 50-day simple moving average and a previous support pivot area.

USD/JPY Daily Chart 9/21
(click to enlarge)

We will need to see a break above 122.50 with the RSI above 60 in the daily chart to assess USD/JPY as bullish. The mode has neutralized since the August dip. However, with a dovish BoJ, the USD/JPY will likely NOT roll over to a bearish mode, and has a chance to revive the prevailing bullish mode since 2012.

USD/JPY Weekly Chart 9/21

(click to enlarge)